/en/lp/blog/key-terms/groupage-shipping
Groupage Shipping: Supporting Supply Chain Efficiency
22/01/2026
Key Takeaways:
- Groupage can cut costs on small shipments by consolidating cargo, rather than paying for half-empty containers.
- Boost efficiency and speed with better space use, groupage can result in reduced storage costs.
- You can also lower carbon emissions and support sustainable logistics by reducing the shipment of half-empty containers.
Sometimes known as consolidation, groupage is a shipping method where multiple small shipments from different businesses all with similar origins and destinations are combined into one container or vehicle. This helps to form a full container load, optimizing space and helping to reduce not only the transportation costs but also the environmental impact of international shipping operations.
Once your cargo has reached its destination, it is separated from the others (this is known as degroupage), before being transported separately to your customers or your distribution hub.
For businesses exporting smaller shipments that wouldn’t fill a container, groupage offers a cost-effective and practical solution.
Optimizing Your Supply Chain with Groupage Shipping
To make sure you enjoy all the benefits of groupage shipping, it’s important to incorporate it effectively into your supply chain.
Combining your shipment with others from similar origins and destinations requires careful planning. Because of this, stakeholders, including suppliers, manufacturers, and retailers must work together to keep shipping schedules aligned.
Groupage enhances your supply chain in several ways, including:
- Lowering transportation costs for companies with smaller or irregular shipments by combining smaller cargo volumes into one container.
- Streamlining operations through maximizing available space in trucks and containers, helping to reduce costs and minimize delays.
- Providing adaptable logistics solutions that are flexible and scalable for companies not ready to commit to FCL shipping.
- Improving transit times by reducing the need to wait for a full truckload of goods, helping your cargo reach your customers faster.
- Better inventory management due to improved stock control and reduced storage costs.
- Reducing carbon emissions by ensuring there are fewer half empty containers being transported, helping to lower fuel consumption, and supporting more sustainable supply chains.
Aided by AI to enhance coordination and communication between stakeholders, groupage can fit seamlessly into your supply chain, offering a strategic way for your company to optimize logistics and stay ahead of your competitors.
Who Wins with Groupage?
Businesses with the Most to Gain
From retail to ecommerce, pharmaceuticals, and manufacturing, groupage is a shipping method that can benefit businesses across a range of industries. If you’re trying to decide if groupage is right for you, consider whether your company regularly ships small quantities of goods and does not require full container loads for every shipment.
Some businesses that may benefit particularly from groupage include:
- SMEs (small and medium sized enterprises) shipping smaller cargo volumes can use groupage to reduce costs and connect with their target market more efficiently
- Online ecommerce retailers who regularly dispatch smaller orders to a range of destinations.
- Manufacturers that produce and ship various products in smaller batches, who can use groupage to consolidate shipments, optimize logistics and reduce costs.
Whether large or small, businesses can use groupage to boost export efficiency, improve customer reach, and drive growth.
Some businesses that may benefit particularly from groupage include:
- SMEs (small and medium sized enterprises) shipping smaller cargo volumes can use groupage to reduce costs and connect with their target market more efficiently
- Online ecommerce retailers who regularly dispatch smaller orders to a range of destinations.
- Manufacturers that produce and ship various products in smaller batches, who can use groupage to consolidate shipments, optimize logistics and reduce costs.
Whether large or small, businesses can use groupage to boost export efficiency, improve customer reach, and drive growth.
Ask MSC
If you’re looking for support in enhancing your supply chain and logistics management, speak to our team. At MSC, we have a global network of experts all of whom work to understand the specific needs of your business and find the right solution for you.
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FAQs
What is groupage in shipping?
Groupage is when your smaller shipments are combined with cargo from other businesses into one container, helping you cut costs and optimize shipping efficiency.
Which businesses gain the most from groupage?
SMEs, eCommerce retailers, and manufacturers that ship smaller or irregular volumes can benefit the most from groupage in shipping since they don’t always need a full container.
Are there any disadvantages to groupage shipping?
Since your cargo is consolidated with others, there may be longer handling times, delays to customs complexity, stricter scheduling, and less flexibility compared to booking a full container load (FCL).